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How Blockchain Limits the Development of Decentralized Artificial Intelligence

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by Giorgi Kostiuk

3 hours ago


Differentiating the concepts of decentralized artificial intelligence and blockchain-based systems is key to understanding the current limitations and opportunities in this space.

AI and Blockchain: Dangerous Analogies

The concept of 'decentralized AI' is often conflated with 'blockchain AI', which actively stifles innovation in the field. Many projects in decentralized AI formally integrate blockchain technologies to access funding and the Web3 community, leading to inefficient architectural decisions.

Games of Incentives in Web3

Projects not utilizing blockchains face difficulties in securing funding and support, forcing teams to make architectural decisions based on funding requirements rather than optimizing user experience. This affects the opportunities for decentralized AI applications.

Does Decentralized AI Need Blockchain?

Innovation in decentralized AI requires technological diversity, with blockchain being just one tool in the toolbox. Projects like Federated Learning demonstrate that decentralization can be achieved without adopting blockchain technology. Successful projects in the next decade will prioritize the architecture best suited to their specific challenges.

As AI centralizes, the need for decentralized alternatives grows. The ecosystem must evolve, recognizing that not every technology requires blockchain solutions to fulfill their goals.

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